Northland Receives the Environmental Permit for its Tapuli Mine and Kaunisvaara Mill

LUXEMBOURG, LUXEMBOURG--(Marketwire - Aug. 20, 2010) - Northland Resources S.A. ("Northland" or "the Company") (TSX:NAU)(FRANKFURT:NBS)(OSLO:NAUR) is pleased to announce that the Finnish-Swedish Border River Commission today approved the environmental permit for the Tapuli mine and the Kaunisvaara mill.

"The permit allows for the mining of more than 100 million tonnes of magnetite iron ore from the Tapuli mine and for the processing of that ore into a high quality concentrate in the Kaunisvaara mill. This is a critical cornerstone in the development of the Kaunisvaara Iron Concentrate Project," stated Karl-Axel Waplan, CEO of Northland Resources S.A.

The permit for the Kaunisvaara mill gives Northland approval to process 20 million tonnes of ore and to produce 5 million tonnes of concentrate per year. This means that there is sufficient capacity to process ore from the Tapuli mine as well as from other deposits that are in the advanced planning and development stage in the Kaunisvaara area. The comprehensive permit approves dedicated facilities for the storage of waste rock from the mine and tailings from the mill, as well as related facilities for the management of process water, and it covers the discharge of excess water into the Muonio River.

The permit conditions, which meet international standards for environmental protection, are in all material respects in accordance with Northland's proposal and expectations, based on a constructive dialogue with local, regional and national authorities in Sweden and Finland, as well as consultations with stakeholders in the region.

Northland is a development-stage mining company, with iron assets in northern Sweden and Finland. The Kaunisvaara Project in Sweden is the Company's flagship project, and is currently the subject of a Feasibility Study, which is expected to be finalized and publicized in September. The Kaunisvaara Project is expected to produce up to 5 million tonnes per annum of a high-grade, high-quality iron magnetite concentrate that is expected to be sold as a premium product to pellet producers.